State Transport Undertakings in India: Reforms and Privatization Strategies

Abstract

Suggests that, with the severe and continuing resource problems besetting the Indian economy, and with the pressure on policy makers to increase economic growth, there is a need to privatize State Transport Undertakings (STUs). Points out that the debate as to whether STUs should undergo sweeping reforms, or be privatized, has assumed serious proportions. Makes an attempt to study the reasons for and against nationalization at the time of the takeover of the passenger road transport business in the public sector. Aims to contextualize this sector in the country′s planned economic development, outlines a profile of STUs, evaluates their operations, and indicates the scope and methods for reform and privatization. Sums up policy implications in the final section.